Wednesday, January 31, 2007

IPO: Uranium Focused Energy Fund

Just yesterday, Middlefield Group, with services in Canada through Middlefield Capital Corporation and managers of several mutual funds, announced that it was filing a preliminary prospectus in relation to the IPO of a new Uranium Focused Energy Fund. Middlefield already has several uranium stocks in its mutual funds, most notably the Middle Group Resource Class, which has Denison Mines (TSE:DML) 7.56% and SXR Uranium One (TSE:SXR) 6.44% as the two of the top three holdings; however, because that particular fund also has a lot of oil and natural gas exposure, its 1 year return of -7.85% was probably the impetus for starting a uranium-only mutual fund.

Let us parse through what Middlefield has to say about this new uranium fund..

In light of the significant capital and time requirements associated with the development of new uranium mines, the Advisor expects uranium prices to remain strong over the life of the Fund, which will terminate on December 31, 2013.

They clearly expect uranium supply-demand fundamentals to remain strong until 2013, which is a longer period of time than I would predict; it is widely acknowledged that the “easy money” has been made in uranium, but that there is upside for investors over the next 12-24 months.

the Portfolio will be focused on the securities of issuers that operate in or have exposure to the uranium sector, supplemented with the securities of other energy related issuers that operate in or have exposure to the energy sector. The Advisor expects that the weighting in uranium related securities will comprise approximately 75% of the value of the initial Portfolio and will include such companies as Cameco Corp., Paladin Resources Ltd., Denison Mines Corp. and sxr Uranium One Inc.

This may have an impact on the latter three companies, all of them near-term or already producing uranium. Depending on how enthusiastic investors are in this uranium fund, I expect these three companies to receive a further boost from institutional buying.

A uranium-only mutual fund is an interesting option; certainly, those investors who are looking for exposure to uranium but do not know what risk tolerance they are willing to take would be relieved to buy essentially a basket of uranium stocks.

Tuesday, January 30, 2007

8th Uranium Stocks Pick: International Enexco (CVE:IEC)

International Enexco (CVE:IEC)

Shares Outstanding = 16,674,651
Shares Fully Diluted = 24,562,057

Mann Lake Project
30% owned by IEC
35% owned by Cameco (NYSE:CCJ TSE:CCO), primary operator
35% owned by UEM

Located 30km from Cameco's McArthur mine (then again, who isn't close?), this project has gone unnoticed by virtually everyone in the uranium investing community until recently. However, summer 2006 drill results were arguably the most impressive out of any uranium explorers, drilling two holes totalling 1,259m with two highest grade intervals averaging 7.12% over 0.25m and 5.53% over 0.4m. Granted, these are over small distances, but the sheer uranium concentration was beyond anything reported that drilling season. This year, the exploration budget has been raised to $1.5 million, with an addition 7-8 drilling holes that should be completed by the summer. Expertise is not an issue, with uranium powerhouse Cameco assuming responsibility as primary operator of the project.

Contact Property
In addition, IEC also owns the Contact Property in Nevada, a project with NI 43-101 compliant resources of ~150 million indicated and another ~250 million inferred pounds of copper and 3.7 million ounces of silver that is currently being developed with the intention of mining the base metal. On January 10, 2007, they announced the commencement of phase one of a three-phase drilling program, with the planned purpose of the next two phases to upgrade resources from indicated and inferred to measured and indicated, paving the way for pre-feasibility studies and other pre-production processes. Phase one is expected to finish late March of this year and IEC will report results as soon as they can. Production optimistically is aimed at late-2009

Most Recent Insider Trades
Jan 9 Lloyd Bray Acquisition 20,000 @ $2.15
Jan 15 Arnold Armstrong Acquisition 8,100 @ $2.10
Jan 17 Paul McKenzie Acquisition 16,500 @ $1.50

IEC closed an $8.9 million January 5th and currently has $16 million in working capital. As you can see, the stock is locked into a long-term bullish trend, a series of progressively higher lows and higher highs, and just recently broke sharply to the upside on massive volume. It seems that word is finally getting out on this small uranium explorer with potential for striking highly concentrated uranium. With Cameco doing the work and the uranium gurus at Sprott owning roughly 10% of the company (as of October, 2006), and possessing an actual copper asset in addition to uranium prospects, International Enexco seems to be well-positioned for a continued run in 2007. CEO and President Arnold Armstrong directly and indirectly owns ~4 million shares and the rest of the management team and director own various chunks as well; there seems to not have been any insider selling that I could find

All in all, IEC is obviously the most speculative uranium play that I have recommended, but could represent a nice opportunity to invest in a cheaper explorer that has yet to gain widespread exposure, even in the mainstream uranium investing community, but with tremendous potential secondary to impressive past results.

Monday, January 29, 2007

Jan 29 Uranium Stocks Update: Denison Mines (TSE:DML)

Peter Grandich, editor and publisher, Grandich Publications

DENISON MINES (TSE:DML): great thing about DENISON is that it replaces CAMECO CORPORATION (NYSE:CCJ TSE:CCO) in my portfolio..I think Cigar Lake will have much more delays..make people realize there are other uranium plays..I think what is going to happen is that institutions especially in US will finally wake up to uranium and target will be exceeded

David Cockfield, senior VP, Leon Frazer & Associates

DENISON MINES (TSE:DML): it has had quite a good run..seems to be one of the emerging offsets to Cameco in terms of uranium play..reasonable amount of ore, production..I am looking at it myself..starting to look respectable..going sideways, I would like to see keep at these levels..not quite ready to say it is a buy yet

Robert Floyd, R.A., Floyd Capital Management

DENISON MINES (TSE:DML): I think supply-demand matrix obviously really strong..crux of problem CAMECO (NYSE:CCJ TSE:CCO)..they are really largest uranium producer..DENISON MINES consolidator, building reserves..very interesting company..some of the research reports for company are not pushing price targets..$12-13..if uranium price is pushed up dramatically, targets move higher but for time being, not terribly aggressive on price..traders would take some profits and looking to reposition..uranium decent area to invest, question is much do you want to pay? Need to look at reclamation at Cameco

Kyle McKay, portfolio manager, Leeward Hedge Funds

DENISON MINES (TSE:DML): done really well as have most uranium junior energy companies following Cameco Cigar Lake, recently merged with IUC, producing 1 million lbs of uranium this year increasing to 4-4.5 next several issue is Denison does have hedges in place for certain amount of production, roll off in 2008..I think there are other opportunities within uranium intermediate junior level..PALADIN (TSE:PDN) looks interesting, SXR URANIUM ONE (TSE:SXR) which had a very difficult day today, URASIA (CVE:UUU) as well

Tuesday, January 23, 2007

Jan 23 Uranium Stocks Update: Ur-Energy (TSE:URE)

UR-ENERGY (TSE:URE) Quarterly Webcast

(a) 342% return in 12 months
(b) believe they have 10,000 shareholders, 5X as much as a year ago
(c) financed 3 times: August ($500,000 and $18.75 million) and (November $2.5 million); company is very comfortable able to satisfy all 2007 obligations and some of 2008, can take advantage of market conditions for next financing
(d) fully diluted ~79 million shares with only ~270,000 warrants and 5.4 options
(e) average share volume >1 million last 3 months
(f) cash on hand $28.7 million, potential cash $38 million
(g) 43-101 compliant resources of 24 million pounds, 88 million pounds historical
(h) 2 major projects being permitted and engineered for ISR production
(i) filling a strategic production niche in the USA; <5% of USA supply from USA mines
(j) Bootheel and Radon Springs intermediate development projects after Lost Creek and Lost Soldier
(k) exploration projects Screech Lake, Eagles Nest, Harding, Kaycee, Radon Springs, North Hadsell, Bugs
(l) Lost Creek Project: expect this to be first producing project late 2008 with wellfield construction; permit to mine application ~June 2007
(m) Lost Soldier Project: expecting pump test results; in several different zones versus Lost Creek, will be more complex
(n) all permitting activities on schedule and within budget
(o) like to emphasize that they are company with full range of exploration, development and near-term production projects
(p) $6 million budgeted for Lost Creek and Lost Soldier in 2007, $1.5 million for exploration and land acquisition in US, $2.5 million for Canadian expenses
(q) in Q1 2007, announcement of signing of toll milling arrangement with plant operator in Wyoming and completion of independent pre-feasibility study on production projects
(r) announcement of JVs, strategic alliances anytime in 2007


Labor and Equipment?
good drill contractor, three drill rigs lined up to start in March, will not impede Lost Creek and Lost Soldier projects..continue to look for experienced people, is a bit of a problem, feel stretched in some areas but hiring regularly

US Listing?
they would have preferred to initiate process last year but decided not prudent use of 2007, want to expand retail distribution, expect application to be made within Q1..looking at both AMEX and NASDAQ, two frontrunners

Lost Soldier
average ISL leaching efficiency 68%; Lost Creek gives better leaching efficiencies, flow rates, seems to management to be somewhat simpler than Lost Soldier..makes sense to move Lost Creek first

expect mid-year 2007, will put out summary of it, will be out before application to mine

Radon Springs
quite a lot of volume but low grade..geographic complexities that they were not quite ready to address yet..not first choice to moving forward with project, as much as grade as anything else..hope to have at least portions for ISL but still work needs to be done..

Bootheel Project
Southeast Shirley Basin project..2.7 million lbs historic resource, was owned by Cameco up until 2000..difficulty moving forward there is more of land problem than geologic, working with US land is not as easy as other countries..multiple mineral owners making more complex..feel close to having that solved..need to start drilling programs, testing them before do more planning

January 2006 Decision
would not move every project towards N43-101 resources..we felt that until a project is really ready to advance and move forward, not best time to use money and resources, lot of balancing, comparison between projects..intend on moving all projects in some manner, either moving to development stage or sloughing them off..

Selling Out vs Independent Uranium Company?
No comment

Potential Water Problems?
Obtaining water not particularly a problem, need to license wells, has not been a problem..ISL creates certain amount of bleed, somewhere in the range of 1.5-2% of total water produced..because of large volume, can be quite significant..can be taken by distillation, evaporation or deep the process of permitting deep disposal wells

As usual, Ur-Energy strikes me as having one of the most pragmatic, experienced, and transparent management teams in the uranium industry. Whether they will progress on their own or be tempted to sell out to a sweetened offer is almost irrelevant; their shareholders will profit either way. I firmly believe in this company and personally bought more shares when they were consolidating around the $3.70-$3.90 level.

Monday, January 22, 2007

Previous Uranium Bear Weighs in on Cigar Lake

Paul van Eeden, president, Cranberry Capital

They probably at Cigar Lake now already have the ability to freeze from underground. So I don't know that the warmer temperatures -- I do not know to what extent the warmer temperatures are impacting them. But certainly if you do not have freeze up on surface then it would complicate matters for exploration drilling. But I am -- I do not know whether it is going to hamper the rehabilitation of Cigar Lake. But the rehabilitation of Cigar Lake is a very serious issue for both Cameco and to the uranium market. It is not going to be easy. -- For Cameco and to the uranium market. I am skeptical on Cigar Lake only because people forget only about three years ago Cameco had flooding at McArthur river and it was a very similar incident. Now they had essentially a similar event at Cigar Lake shutting down Cigar Lake, in my opinion, almost undetermined period of time because I think it is going to take a long time for them to figure out how to deal with that. It is not going to be easy. Until they deal with it I think the uranium market is, is going to be under pressure except for the fact that there was so many investment funds coming into the uranium space. And that all the uranium that they bought in the last two years, which caused the uranium price to move up before Cigar Lake flooded, that inventory that these investment funds now hold is potential supply. If that potential supply was to be coaxed into the market then you could see the uranium price doing the opposite of what people would expect. It can soften even though Cigar Lake isn't resolved. If I were not for Cigar Lake I would be an incredible bear on uranium prices. But Cigar Lake is very material. In my mind changes a lot. Cigar Lake takes out about 12% of worldwide demand. And demand is about almost twice as much than mine supply. So Cigar Lake accounts for almost 20, 24% of what we banked on as supply post 2008. That has now been postponed. This is a very major event.

Thursday, January 18, 2007

RoBTV: Patricia Mohr

Patricia Mohr, vice president of economics, Scotiabank

I have been bullish for number of years now and our average price for spot uranium is $80..averaged $48.10 last year, right now around $ end of this year could well be approaching $90..Cigar Lake had huge immediate impact because Cigar Lake would have been first major increase in new mine supply in world..we have not seen much incremental mine supply for really a decade and Cigar Lake would eventually ramp up to 18 million pounds, but now delayed at least a year, probably more..immediate price increase, moved up a lot more since announcement of flood

Monday, January 15, 2007

RoBTV: Jean-Francois Tardif, Sprott

Jean-Francois Tardif, portfolio manager, Sprott Asset Management

ENERGY METALS (TSE:EMC): we own basket of uranium..ENERGY METALS has been one of primary holdings, still continue to own it..we like it..they have a lot of uranium on the ground, some proven, some inferred..US has largest shortage of uranium versus consumption..assets in US are going to be worth lots of money down the road

UR-ENERGY (TSE:URE): another uranium investment that we have..again US asset..rumors of this company to be taken over, possible..I think this company could be taken over in 2007

PELE MOUNTAIN RESOURCES (CVE:GEM): early uranium..we bought at private placement, very happy..goes to a basket because early exploration but not something I would buy here because of run..500% this year

SOLEX RESOURCES (CVE:SOX): indeed we like it..I have to admit that we own many uranium stocks..probably about 25..this one is exploration..I like the strategy of SOLEX..get some land, attractive projects, get somebody else to drill..not dilution going forward..still good upside from here

PAST PICK: WESTERN PROSPECTOR GROUP (CVE:WNP): uranium in Mongolia..hammered in 2006 because of Mongolia and lawsuit..if you are willing to take risk, this is one of cheapest stocks to buy

FORSYS METALS (TSE:FSY): uranium, have project in Namibia, same country as PALADIN RESOURCES (TSE:PDN), grade lower, cost should be higher, water issue as well..if uranium north of $100, this project will be able to produce uranium but take years and years..because of run, be careful in short-term..

DENISON MINES (TSE:DML): stock will do fine under a basket, more advanced company..not something that Sprott owns..

PALADIN RESOURCES (TSE:PDN): second stock you can buy, CAMECO (NYSE:CCJ TSE:CCO) the largest..PALADIN just started producing, no longer cheap but will stay expensive..for large cap investor, you can only buy CAMECO and PALADIN..we own it in our funds

SOLEX RESOURCES (CVE:SOX): client of really took off in last couple months due to runup in uranium and quality of projects in Peru..would like to see some consolidation in SOLEX because it has had big run..corporate-wise still has long ways to go..

CAMECO CORPORATION (NYSE:CCJ TSE:CCO): I am not a geologist but I know some of the best in the world..privately many of them they tell me that they think there is a good chance that Cigar Lake is lost..on that basis, it is not first hand, from what I hear..I do not think Cameco deserves to be number one uranium play..would sooner own DENISON MINES (TSE:DML)..look elsewhere

CROSSHAIR EXPLORATION (CVE:CXX): continues to be in my biased view single best junior uranium has woken up to Labrador play..AURORA ENERGY (TSE:AXU) I think will be a takeover target..have not changed fundamental view at all

Wednesday, January 10, 2007



In case you missed it, there is a new mid-tier uranium junior that just started trading several weeks ago. It is not one of my picks yet, but I thought this was a good time to start a section in my blog on profiling more uranium stocks.

First Uranium (TSE:FIU) is a new gold and uranium company that just completed its $233 million IPO. Its parent company Simmers & Jack will spin off two projects in South Africa called Ezulwini and Buffelsfontein to First Uranium: the main objective of Ezulwini project is to re-open and develop the underground mine while constructing a tailings recovery facility for the Buffelsfontein project. Simmers & Jack still retain more than two-thirds of First Uranium.

The company cites exposure to both uranium and gold as a "strategic commodity mix" and expects produce gold in the 2nd quarter of 2007 for the Ezulwini project with uranium being first produced from the same project by the end of 2008. The Buffelsfontein project is expected to produce both uranium and gold by mid-2008. Any uranium production next year represents a very serious claim and First Uranium must believe that it can do such, advertising near-term production as its very first "Business Strength" in their prospectus.

With the IPO money, First Uranium intends to use the bulk of it on the two projects, about $89 million on Ezulwini and $62 on Buffelsfontein

Ezulwini Project

First Uranium will recommission the underground uranium and gold mine. There are a number of reef packages, including the Upper and Middle Elsberg reefs which the company will focus on. Measured and Indicated Reef includes just over 2 million ounces of gold and 6.7 million ounces of uranium. There is some engineering work to be done, but the plan is for a 19 year mine life for Ezulwini.

Buffelsfontein Project

First Uranium wants to build a recovery plant for this mine that contains a total of 2.7 million ounces of gold and 42.7 million lbs of uranium in measured and indicated, both of much lower grade. The goal ramp up production after three years to produce 138,000 ozs of gold and 950,000 lbs of uranium a year. Again, the mine life is fairly long at 14 years. However, the caveat with Buffelsfontein is that First Uranium needs to convert their old mining permit to a new one that lets them mining in the tailing dumps.

Personal Thoughts

First Uranium is an interesting play of two very hot metals and is a company that comes from an impressive lineage; Simmers & Jack was THE stock to own in the JSE in 2006 and has established itself as one of the most promising South African mining firms. First Uranium's goals of near-term production of gold and then uranium, ramping up to 380,700 ounces of gold and 1,534,600 pounds of uranium in 2009, is something that does intruige me; however, one must consider that several important steps need to be taken before the company becomes a full-fledged gold and uranium producer. The stock debuted at $7, ran up to almost $9 before being caught in the uranium stock meltdown where it currently hovers just under the $8 mark.

Uranium Stocks Correcting IV

Indeed, the broader market was not satisfied with just a three day correction and have retraced further. Uranium stock were pounded today, speculative ones moreso than producers, with some of the more precipitous parabolic stocks dangerously close to their 50 day MAs. Opportunities to buy uranium stocks will arise as a result of this correction but the entry point remains uncertain.

Peter Grandich of The Grandich Letter was on RoBTV last Friday and I really liked his comments:

On Uranium:
I think uranium stocks going through a correction, good that they are..I am still extremely bullish, $100/lb uranium when not if..being bullish since $18, raising target price thrice, just raised from $75 to $100..only very early concern that I would express is starting to see some froth in junior resource side..overconfidence..if it continues and shares double or triple without a lot of low volume, I would grow more concerned..$100 fairly safe bet, think juniors still have multiple returns in them

Although tempting to buy some uranium stocks right now, I still see more pullback ahead as the broader market figures to bottom out sometime in the next week or two. Remember, the supply-demand fundamentals of uranium remain the same, unlike many base metals at the moment; for example, inventories even in high-flyer zinc have gone up in the LME and that metal has corrected 17% just this year.

Monday, January 08, 2007

Jan 8 Uranium Stocks Update: sxr Uranium One (TSE:SXR)

SXR Uranium One (TSE:SXR) received a nasty surprise today when mining giant RIO TINO (NYSE:RTP) pulled its offer of the Wyoming Sweetwater mill and adjacent properties to the uranium junior. The reason, of course, being that the Cigar Lake impetus has rocketed uranium prices and the original $110 million offer by SXR in the summer now to Rio Tinto does not seem to make as much sense. SXR shares were down sharply in today's trading session, shaving 7.8% as investors reacted disappointingly to the news.

So now, the company has several challenges: first, to seal its other 2006 summer deal with US Energy Corp for the Shootarang Mill in Utah, and secondly, to figure out what to do with its pile of cash; it had recently completed a $155 million offering of convertible debentures. The company already has said that it would not seek to purchase uranium explorers; personal speculation puts out the logical possibility that it would seek to buy one of the uranium near-producers with American properties: UR-ENERGY (TSE:URE), ENERGY METALS (NYSE:EMU TSE:EMC), STRATHMORE (CVE:STM), URANERZ (AMEX:URZ) are candidates, although Energy Metals has a generous market cap of around $650 million, while Ur-Energy (~$280 million), and Strathmore ($225 million) would be somewhat more palatable.

Saturday, January 06, 2007

Uranium Stocks Correcting III

Trading week was done with progressively smaller corrections in both the TSX and Venture Exchanges, with some opportunistic buying at the end as bargain hunters stemmed the red tide somewhat. Uranium stocks were fairly mixed as a whole, with about half of the top twenty uranium junior by market cap rising and, in general, none of them swaying by more than a few percent. Whether or not this signifies a bottoming out of the correction is uncertain, however, as one needs to look at the broader market. In the past year, the TSX to me has had two significant corrections of >500 points and they both lasted longer than three days. Whether or not this trend continues, however, is a matter which I feel unqualified to settle. I myself have been hunting for some reasonably-priced stocks: UR-ENERGY (TSE:URE) is one of my picks that seems to be fairly attractive at the moment compared to its peers.

Thursday, January 04, 2007

Uranium Stocks Correcting II

Another huge correction for both the TSX and Venture Exchanges brought further correction in the uranium sector, with 18 of the top 20 by market capitalization uranium juniors in the red; only STRATECO RESOURCES (TSE:RSC) and LARAMIDE RESOURCES (TSE:LAM) gained modestly while heavyweights CAMECO (NYSE:CCJ TSE:CCO), PALADIN (TSE:PDN), URASIA (CVE:UUU), and SXR URANIUM ONE (TSE:SXR) all dropped between 2-5% in value. Although many have been caught in this correction, the smart ones know that uranium fundamentals have not changed, the supply-demand imbalance is still there, and heavyweights from Sprott Asset Management, CIBC World Markets (Jeffrey Rubin) and Scotiabank (Patricia Mohr) are still saying all the right things about uranium. Indeed, it is my hope that the broader market corrects even further and cools down this overheated sector as sensible buying opportunities for uranium stocks at these levels still remain far and few in-between in my opinion.

Uranium Stocks Correcting

As the TSX shrank >200 points and the Venture Exchange gave away proportionally even more, uranium stocks were crushed alongside. None of the top 20 market cap uranium juniors escaped unscathed except for URANIUM PARTICIPATION CORPORATION (TSE:UPC). Some, like ALBERTA STAR (CVE:ASX), shrank by double digits. Even relative heavyweights in the uranium sector like SXR URANIUM ONE (TSE:SXR) gave back over 8%. As I alluded to yesterday, a correction looked impending, both for uranium stocks and the broader market. One of the best comments I heard yesterday was an analyst speaking on RoBTV who said that the bearish trend might continue for a little while, because you do not just drop >200 points one day and expect things to return back to normal the next. In addition, I also hinted yesterday that dips might represent buying opportunites for uranium stocks and I personally am hoping to find some bargains in the trough of the correction.

Wednesday, January 03, 2007

2006 Uranium Stock Picks Recap

As we head into 2007 and, by all accounts, another strong year for uranium stocks, let us take a moment and reflect on the performance of my past uranium picks @ While the numbers might be hard to see, the trendline for each and every stock is undeniably positive, with a massive spurt at the end secondary to the Cigar Lake fiasco. Increased publicity and new investor money has added tremendous fuel to the uranium momentum and it remains to be seen whether this uptrend can perptuate itself much further before an inevitable correction hits. However, as long as the supply-demand picture is still sharply skewed, these corrections should be viewed as a further buying opportunity or entry point for those patient enough.








Tuesday, January 02, 2007

Jan 2: Jean-Francois Tardif, Sprott Asset Management

Jean-Francois Tardif, senior portfolio manager, Sprott Asset Management

PALADIN RESOURCES (TSE:PDN): uranium producer as we speak..producing first few hundred pounds in next few weeks..mine in Namibia..they have many many projects..8 million years in five, six years..number of producers in one is not cheap but if you believe price of uranium keep on going, can own this..core holding in many uranium portfolios

CAMECO (NYSE:CCJ TSE:CCO): as a takeover potential, I doubt it..reason is there are rules in Canada..uranium is strategic resource..Cameco as my hedge against junior uranium..half a percent of my fund, small short position..

STRATHMORE MINERALS (CVE:STM): company that owns some uranium in ground, not a producer..have been an early player, grabbed assets..we are confident over time they will be able to take to is true that it has not done as is good holding in basket..some risk, not will take time..we feel it is reasonably cheap

PELE MOUNTAIN (CVE:GEM): we were lucky to be invested..paid 27-30 cents..uranium exploration company, goes into a basket of different uranium stocks..we own more than a dozen..maybe even twenty..some early exploration, some resources in ground..involves a lot of risk..after big run wait to buy..hard call short-term..I tend to wait for some correction before buying stocks I like

UEX CORPORATION (TSE:UEX): discovered new is although a risky stock because they are drilling further and more, depending on news..definitely some of those holes huge grade..time before taken to cap not small anymore..risky situation especially after this big run..will be news-driven

URASIA ENERGY (CVE:UUU): producer of uranium in Kazakhstan..some political risk even with deal with government, probably is fine..personally not comfortable with it..probably cheapest of producers but I prefer to invest to invest in Canada, Australia..not something we own

Monday, January 01, 2007

Jan 1: Patricia Mohr, vice president economics, Scotiabank Uranium Outlook 2007

Here are some interesting excerpts from commodities heavyweight Patricia Mohr regarding her views on uranium for the upcoming year..

uranium is my top commodity pick of the 32 commodities in the index..there has been a fundamental rejuvenation..138 new reactors between now and 2020..even in the United States, 20 new reactors in the next decade..not really much progress in boosting up mine supply..this year global uranium production probably down again because of operating problems..while you getting some price response in terms of supply, a little bit of reactivation of shut-down mines, expansion of existing ones, usually long lead times between rising prices of uranium and actually getting a new mine onstream..couple of small projects but quite small relative to overall demand picture..we are expecting uranium prices currently at $72 to end next year at ~$85-90
The conscensus amongst experts seem to be that uranium will still be relatively strong in 2007 compared to other commodities and that the window for investing in uranium stocks is open for at the next 12 months.